Moody's reviewing Morgan Stanley for downgrade

Moody's says it is reviewing Morgan Stanley's long-term ratings for a possible downgrade.

Morgan Stanley currently carries an investment-grade ''Aa3'' senior unsecured rating from Moody's. The credit ratings firm says the likely outcome of the review would be a one-notch downgrade to ''A1,'' which is still considered investment grade.

Morgan Stanley's ''financial performance and risk management has been inconsistent'' since the mortgage and credit markets began to deteriorate in the middle of 2007, Moody's said in a statement.

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